Weller Company\'s budgeted unit sales for the upcoming fiscal year are provided

Question

Weller Company's budgeted unit sales for the upcoming fiscal year are provided below:

The company’s variable selling and administrative expense per unit is $2.70. Fixed selling and administrative expenses include advertising expenses of $13,000 per quarter, executive salaries of $47,000 per quarter, and depreciation of $27,000 per quarter. In addition, the company will make insurance payments of $4,000 in the first quarter and $4,000 in the third quarter. Finally, property taxes of $6,800 will be paid in the second quarter.

Required:

Prepare the company’s selling and administrative expense budget for the upcoming fiscal year. (Round "Per Unit" answers to 2 decimal places.)

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted unit sales 28,000 29,000 21,000 26,000

Explanation / Answer

Prepare the company’s selling and administrative expense budget for the upcoming fiscal year.

Weller Company Selling and Administrative Expense Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Sales unit 28000 29000 21000 26000 104000 Variable selling and administrative expense per unit 2.70 2.70 2.70 2.70 2.70 Variable selling and administrative expense 75600 78300 56700 70200 280800 Fixed selling and administrative expenses: Advertising expense 13000 13000 13000 13000 52000 Executive salaries 47000 47000 47000 47000 188000 Depreciation 27000 27000 27000 27000 108000 Insurance payment 4000 4000 8000 Property tax 6800 6800 Total fixed selling and administrative expenses 91000 93800 91000 87000 362800 Total selling and administrative expenses 166600 172100 147700 157200 643600 Less: Depreciation 27000 27000 27000 27000 108000 Cash disbursements for selling and administrative expenses 139600 145100 120700 130200 535600

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